The Cigna Group has successfully completed the sale of its Medicare Advantage, Cigna Supplemental Benefits, Medicare Part D, and CareAllies businesses to Health Care Service Corporation (HCSC). The transaction, valued at $3.7 billion, streamlines Cigna's portfolio and allows the company to focus on driving further innovation in its core growth platforms.
As previously announced, the majority of the proceeds from this divestiture are expected to be allocated to share repurchases, reinforcing Cigna's commitment to returning capital to shareholders. This strategic move aims to enhance financial flexibility and support long-term EPS growth targets.
Cigna will continue to serve Medicare populations through its Evernorth Health Services, providing pharmacy benefit services and other solutions to the divested Medicare businesses under service agreements with HCSC for an agreed period post-closing. The transaction is not expected to disrupt coverage or service for customers, clients, providers, or brokers of the divested businesses.
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